Correlation Between Shengyuan Environmental and Cultural Investment
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By analyzing existing cross correlation between Shengyuan Environmental Protection and Cultural Investment Holdings, you can compare the effects of market volatilities on Shengyuan Environmental and Cultural Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shengyuan Environmental with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengyuan Environmental and Cultural Investment.
Diversification Opportunities for Shengyuan Environmental and Cultural Investment
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shengyuan and Cultural is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shengyuan Environmental Protec and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Shengyuan Environmental is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shengyuan Environmental Protection are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Shengyuan Environmental i.e., Shengyuan Environmental and Cultural Investment go up and down completely randomly.
Pair Corralation between Shengyuan Environmental and Cultural Investment
Assuming the 90 days trading horizon Shengyuan Environmental Protection is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, Shengyuan Environmental Protection is 1.61 times less risky than Cultural Investment. The stock trades about 0.0 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Cultural Investment Holdings on September 2, 2024 and sell it today you would lose (53.00) from holding Cultural Investment Holdings or give up 19.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengyuan Environmental Protec vs. Cultural Investment Holdings
Performance |
| Timeline |
| Shengyuan Environmental |
| Cultural Investment |
Shengyuan Environmental and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengyuan Environmental and Cultural Investment
The main advantage of trading using opposite Shengyuan Environmental and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengyuan Environmental position performs unexpectedly, Cultural Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Shengyuan Environmental vs. Bank of China | Shengyuan Environmental vs. Kweichow Moutai Co | Shengyuan Environmental vs. PetroChina Co Ltd | Shengyuan Environmental vs. Bank of Communications |
| Cultural Investment vs. China Minmetals Rare | Cultural Investment vs. Chengtun Mining Group | Cultural Investment vs. Qinghaihuading Industrial Co | Cultural Investment vs. China Life Insurance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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